Value principles of the equilibrium economic development in the new global challenges

The paper reveals that the formation of the information society at the turn of the century with a focus on a network economy marked the beginning of the economic relations and laws system global modification. This modification is due primarily to the latest technological changes and innovations in information and communication. However, in its profound nature, it has a value character and is associated with the need for a thorough understanding of the new socio-economic picture of the world. The traditional interpretation of this situation does not meet public expectations about progressive, creative development possibilities. Public dissatisfaction with globalisation is growing. Phenomena of socio-economic instability (turbulence) and uncertainty undermine the civilisational foundations of the social economy, create several global challenges and threats. It is shown that an adequate guideline for successful management is to ensure balanced social development through the development of a holistic institutional architecture, which operates under the laws of effective economic equilibrium. Economic theory is designed to substantiate the laws of operation and the principles of building the institutional architecture of management. At the same time, modern economics remains traditional, while the correct answer to the global social demand must be given by relativistic economics, which can form the socio-economic foundations of the phenomenon of relativity. It is determined that the concept of the institute as a transformed form of economic value (economic good, the only one in the triple definition of marginal utility, value, and price) is an adequate basis for building relativistic economics, methodological source of creative knowledge and formation of the latest holistic picture of the world. It is noted that the tools of value economic analysis (in particular, the model of general economic equilibrium) were formed in the depths of classical political economy, but today it needs to be updated. It is established that the methodological restoration of economics as a valuable source of a positive relativistic understanding of the latest world picture is an essential agenda for further creative research to determine the principles of building an economy of trust forerunner of the institutional architecture. The basis of such an economy is a public sector model focusing on the market of public goods, which harmonises the system of public interests, processes of self-organisation and organisation in the economy, thus contributing to the formation of effective mechanisms for stabilising social development.

General Equilibrium Theory in Economics And Beyond

The General equilibrium theory tries to show how and why all free markets tend toward equilibrium in the long run. However, what is meant by equilibrium in this paper is more from a thermodynamical point of view. In order to understand the actual situation, it is necessary to study open systems which are complex. In physics, such a behavior in a complex system can be explain by using Non Equilibrium Thermodynamics. A system is able to self-organize and sustain itself away from equilibrium. Economic systems may fluctuate around a particular point. To sustain it far from the equilibrium state, it needs to degrade more energy and materials. In this study, the energy consumption patterns of Sri Lanka and USA are discussed. The pattern concerning Sri Lanka is close to the model proposed here, whereas the energy consumption pattern of USA is more complicated due to external factors.

How “Green Knowledge” Influences Sustainability through Behavior Change: Theory and Policy Implications

The urgent and critical challenges of transforming patterns of behavior from current unsustainable ones are encapsulated in the 2015 UN Sustainable Development Goals (SDGs). Central to these goals and targets are systems of sustainable consumption and production. This crucial goal depends on consumers and producers making choices that depend on knowledge available to them and on other factors influencing their preferences in accordance with norms and culture. This paper investigates how “green knowledge” (i.e., knowledge of ecologically and socially sound products and practices) influences sustainability in the intersections of knowledge, preferences, behavior, and economic and environmental performance. By employing a general equilibrium economic model, we show that consumers, producers, and industry regulators with different degrees of knowledge and concern about the health and environmental benefits of products and production would lead to different economic and environmental consequences. As “green knowledge” influences consumption patterns and government policy-making, our model shows that, in principle, there will be a shift in the content of the economy to that which supports the achievement of long-term sustainability.

Habit Formation, Public Capital Congestion Effect and Economic Growth

This paper constructs an endogenous growth model including habit formation and public capital congestioneffect, and analyzes the influence of fiscal policy and public capital congestion effect on economic growth under theframework of habit formation. It is found that under decentralized economy, there exists a unique equilibrium growthrate, and the growth rate increases with the improvement of private production efficiency, public capital productionefficiency and the reduction of public capital congestion effect. The influence of habit-forming parameters on theequilibrium growth rate depends on the relative risk aversion coefficient. In the social arrangement economy, habitformation and public capital jointly determine the problem of multiple equilibrium, similarly, the increase of publiccapital congestion effect will also reduce the equilibrium economic growth rate.

Will Haiti benefit from setting up an agricultural research center? A foresight quantification

Purpose Investments in agricultural research and development (AgR&D) have been an engine of agricultural productivity growth; as a result, food security and poverty situations have improved in many countries around the world. However, in Haiti, a small Caribbean country, neither has any formal agricultural research center (ARC) been established nor has a significant amount of money been invested for AgR&D. This paper aims to quantify whether setting up an ARC would be beneficial for Haiti. Design/methodology/approach A fixed-effects regression, the International Model for Policy Analysis of Agricultural Commodity and Trade impact and benefit – cost ratio (BCR) measures are used to estimate future benefits from setting up a new ARC in Haiti. Findings A total of US$21.0m annual investment is required for the proposed ARC, which could generate up to US$1.16bn in social benefits during the next three decades. In terms of BCR, if one dollar is invested for AgR&D in Haiti, the payoff could be US$1.33-4.52. Therefore, establishing an ARC is crucial for Haiti, as it is expected to generate positive benefits for society by helping formulate pro-farmer policies as well as disseminating modern agricultural technologies among farmers. Originality/value Because, to the best of the authors’ knowledge, there is no such study in Haiti’s perspective, this study contributes to the country’s literature evaluating the feasibility of establishing a new research center in Haiti with a partial equilibrium economic model.

G Cubed Model Analysis: The Impact of Loss of Confidence In Emerging Countries on The World Economy

<p>Financial liberalization has significant role in fostering economic growth in the developing countries. However, it also cause a risk for the emerging countries when the advanced countries make an interest rate adjustment. This paper try to examine the economic adjustment both on emerging countries and advanced countries in response to the shift of risk perception in emerging countries. This study will simulate the shock of risk perception in emerging countries by using intertemporal general equilibrium economic model that are called G-Cubed Model. The simulation result from the model indicates that international financial flow has a significant role in explaining the spill over effect of the lost confidence in emerging countries. In the short run, there is a significant drop in consumption and private investment in emerging countries. In the long run output of the emerging countries is expected steady below the baseline. On the other hand, in advanced countries, there is a significant increase in private consumption and investment in the short run. Moreover, it is expected that lower interest rate stimulates the investment in the future in advanced countries.</p><p><strong>Keywords</strong>: G-Cubed, emerging, simulation, risk, financial flow</p><p><em>Liberalisasi keuangan memiliki peran penting dalam mendorong pertumbuhan ekonomi di negara-negara berkembang. Namun, liberalisasi keuangan juga akan menimbulkan risiko bagi negara-negara berkembang ketika negara-negara maju melakukan penyesuaian suku bunga.</em><em> </em><em>Penelitian ini bertujuan untuk melakukan analisis dampak dari pergeseran persepsi risiko baik bagi negara-negara berkembang maupun negara-negara maju. Studi ini akan mensimulasikan pergeseran persepsi risiko di negara-negara berkembang dengan menggunakan model ekonomi keseimbangan umum antarwaktu yang disebut Model G-Cubed. Hasil simulasi dari model menunjukkan bahwa aliran keuangan internasional memiliki peran yang signifikan dalam menjelaskan efek tumpahan dari hilangnya kepercayaan di negara-negara berkembang. Dalam jangka pendek, ada penurunan konsumsi dan investasi swasta yang signifikan di negara-negara berkembang. Dalam jangka panjang, output dari negara-negara berkembang diperkirakan stabil di bawah baseline. Di sisi lain, di negara maju, ada peningkatan konsumsi dan investasi swasta yang signifikan dalam jangka pendek. Selain itu, diharapkan suku bunga yang lebih rendah merangsang investasi di masa depan di negara-negara maju.</em></p><p><strong><em>Kata Kunci</em></strong><em>: G-Cubed, negara emerging, simulasi, risiko, arus keuangan</em></p>

PRINCIPLES OF SUSTAINABLE SPATIAL NONEQUILIBRIUM

<p>On the basis of ongoing research and development the authors substantiate the need to improve the theoretical and methodological foundations of self-development processes for equilibrium and non-equilibrium economic multi-level systems.Particular attention is paid to the analysis of the functioning of the so-called «microscopic open nonequilibrium systems»</p><p>In the article, the economic system is viewed from the point of view of synergy - as dual entities consisting of a continuous and discrete sphere.Classification of possible evolutionary changes in the kinetic and constitutional spheres in the process of self-development for economic equilibrium and nonequilibrium systems.Particular attention is paid to the continuous self-organization of microscopic open systems.</p>

PRINCIPLES OF SUSTAINABLE SPATIAL NONEQUILIBRIUM

<p>On the basis of ongoing research and development the authors substantiate the need to improve the theoretical and methodological foundations of self-development processes for equilibrium and non-equilibrium economic multi-level systems.Particular attention is paid to the analysis of the functioning of the so-called «microscopic open nonequilibrium systems»</p><p>In the article, the economic system is viewed from the point of view of synergy - as dual entities consisting of a continuous and discrete sphere.Classification of possible evolutionary changes in the kinetic and constitutional spheres in the process of self-development for economic equilibrium and nonequilibrium systems.Particular attention is paid to the continuous self-organization of microscopic open systems.</p>

Conceptual approach to the formation of innovation strategies of economic systems of the micro- and meso-level based on self-organization

In modern conditions, sustainable development of the economy of the country and regions inherently corresponds to the principle of innovation. The principle postulates the need to accelerate the development of innovation in the process of constant changes in a non-equilibrium economic system. The authors propose to ensure the accelerated development of innovations by implementing a scientifically based innovation strategy of regional enterprises. In this case, the concept of the development of strategies of the enterprise and the region, according to the authors, should be based on adapting the foresight methodology to the processes of self-organization of the system, including methodological tools for creating regional “points of innovation growth” taking into account the specifics of the region.